Please, I need help answering and solving questions 5-9 (showing the work). Thank you!

64 5. A firm finances its activities with both debt (that costs 8%) and equity (that costs 12%). The firm can borrow additional funds at 8% if it so desires. A Board of Directors member argues that the firm should undertake only those investments that cam a return of at least 12% because only investments caring this rate will increase shareholder value If a firm decides to make investments based on this logic it will A) decline to make investments that it should undertake (B) undertake investments that it should decline C) make investment decisions that increase shareholder value D) lower its stock price 6. The Bad Food Lunch Counter is expanding and expects additional after-tax cash flows of $31,500 a year for 4 years. The expansion requires $45.000 in new fixed assets which will be worthless at the end of the project (depreciation is included in the after-tax cash flow estimates). In addition, the project requires $4,500 of net working capital throughout the life of the project. What is the net present value of this project at a required rate of return of 12 percent? A) $48,477.29 B) $31,033.33 C) $42,509.63 D) $49,036.34 7. Although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately musi cos Capi A) the internal rate of return that is relevant for evaluating the firm's future investment opportunities B) the weighted average cost of capital that is relevant for evaluating the firm's future investment opportunities -C) the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities D) the required equity rate of return that is relevant for evaluating the firm's future financing opportunities 8. In evaluating the initial investment for a capital budgeting project, A) an increase in net working capital is considered a cash inflow B) a decrease in net working capital is considered a cash outflow an increase in net working capital is considered a cash outflow D) net working capital is a "wash" with outflows equaling inflows 9. A firm has issued preferred stock at $100 par value per share. The stock will pay a $11 annual dividend. The cost of issuing and selling the stock was $7.50 per share. The cost of the preferred stock is A) 9.2 percent B) 11 percent C) 12.4 percent D) 11.9 percent Net proceeds = 100 -7.50 : 92,50